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Ordinance 1833ORDINANCE NO. 1833 AN ORDINANCE OF THE CITY OF EDMONDS, WASHIN`GTON, IMPOSING A LEASEHOLD EXCISE TAX FROM AND AFTER JANUARY 1, 1976, PURSUANT TO CHAPTER 61 LAWS OF 1975-76 SECOND EXTRAORDINARY SESSION LAWS OF THE STATE OF WASHINGTON; SETTING THE RATE OF SAID TAX; PROVIDING FOR THE ADMINISTRATION AND COLLECTION OF SAID TAX; PROVIDING FOR EXEMPTIONS FROM SAID TAX; PROVIDING FOR CONTRACTING WITH THE DEPARTMENT OF REVENUE OF THE STATE OF WASHINGTON FOR THE ADMINISTRATION AND COLLECTION OF SAID TAX; IMPOSING PENALTIES FOR FAILURE TO PAY SAID TAX; AND CREATING A NEW CHAPTER 4.91 IN THE EDMONDS CITY CODE. WHEREAS, the State of Washington by virtue of Chapter 61 of the Laws of the State of Washington of the 1975-76 Second Extraordinary Session imposed a twelve percent (12%) excise tax on the act or privilege of occupying or using publicly owned real or personal property through a leasehold interest on or after January 1, 1976, and WHEREAS, said law specifically provides that counties and cities may enact ordinances imposing such tax which tax shall be a credit against the taxes otherwise payable to the State of Washington, and WHEREAS, if the City of Edmonds does not impose the tax revenues will be paid directly to the State of Washington that by virtue of the imposition of the tax will thus be retained within the City of Edmonds, and WHEREAS, it is deemed to be in the public interest, health, safety and general welfare and the City Council so finds that said tax should be imposed effective January 1, 1976, now, therefore, THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Creation of New Chapter. There is hereby created a new Chapter 4.91 to the Edmonds City Code entitled "Leasehold Tax." Section 2. 4.91.010. Imposition of Tax. There is hereby levied and shall be collected a leasehold tax on and after January 1, 1976, upon the act or privilege of occupying or using publicly owned real or personal property within the City of Edmonds through a "leasehold interest" as defined by Section 2, Chapter 61, Laws of 1975-76, Second Extraordinary Session Laws of the State of Washington (hereinafter called the "State Act"). The tax shall be paid, collected and remitted to the Department of Revenue of the State of Washington at the time and in the manner prescribed by Section 5 of the "State Act." Section 3. 4.91.020. Rate of Tax. The rate of tax imposed by Section 1 shall be four percent (4%) of the taxable rent as defined by Section 2 of the "State Act" provided, however, that the following credits shall be allowed in determining the tax payable: (1) With respect to a leasehold interest arising out of any lease or agreement, the terms of which were binding on the leasee prior to July 1, 1970, where such lease or agreement has not been renegotiated as defined by Section 2 of the "State Act" since that date, and excluding from such credit any lease or agreement including options to renew which extends beyond January 1, 1985, as follows: (a) With respect to taxes due in the calendar year 1976, a credit equal to eighty percent (80%) of the tax produced by the above rate; (b) With respect to taxes due in the calendar year 1977, a credit equal to sixty percent (60%) of the tax produced by the above rate; (c) With respect to taxes due in the calendar year -2- 1978, a credit equal to forty percent (40%) of the tax produced by the above rate; (d) With respect to taxes due in the calendar year 1979, a credit equal to twenty percent (20%) of the tax produced by the above rate. (2) With respect to a product lease as defined by Section 2 of the "State Act", a credit of thirty-three percent (33%) of the tax produced by the above rate. Section 4. 4.91.030. Administration and Collection of Tax. The administration and collection of the tax imposed by this ordinance shall be in accordance with the provision of the "State Act." Section 5. 4.91.040. Exemptions. Leasehold interests exempted by Section 13 of the "State Act" as it now exists or may hereafter be amended shall be exempt from the tax imposed pursuant to Section 1 of this ordinance. Section 6. 4.91.050. Inspection of Records. The City of Edmonds hereby consents to the inspection of such records as are necessary to qualify the City of Edmonds for inspection of records of the Department of Revenue pursuant to RCW 82.32.230. Section 7. 4.91.060. Authorization to Contract with State. The Finance Director is hereby authorized to execute a contract with the Department of Revenue of the State of Washington for the administration and collection of the tax imposed by this ordinance provided, however, that the City Attorney shall first approve the form and content of said contract. Section 8. 4.91.070. Penalties. Failure to pay any tax due hereunder shall constitute a misdemeanor and a person or persons convicted of such a crime shall be subject to a fine of up to $250 for each separate offense. Section 9. 4.91.080. Monetary Penalty for Late Tax Payments. -3- All taxes not paid when due pursuant to the terms of this Chapter and the "State Act" shall be subject to a penalty assessment in addition to the tax itself of an amount equal to twenty percent (200) of the total tax delinquency. Section 10. 4.91.300. Severability. If any provision of this ordinance or its application to any person or circumstance is held invalid, the remainder of the ordinance or the applica- tion of the provision to other persons or circumstances shall be deemed not to be affected. APPROVED: �91y- PRO TEM,`-ROBERT A. ANDERSON ATTEST: WAi Filed with the City Clerk: March 24, 1976 Passed by the City Council: April 6, 1976 Published: April 14, 1976